Since the federal government began tax credit programs a few years ago, they’ve been of great interest to homeowners. The rebates available from utility companies given to customers who install energy-efficient equipment are popular too.
Federal HVAC Tax Credits
Unfortunately, the tax credits for most types of standard HVAC equipment expired at the end of 2013, and they have not been renewed.
There are, however, federal tax credits for geothermal heat pump systems. These systems are more efficient than air-source heat pumps. They use pipes buried underground or run into wells or ponds to efficiently collect heat in winter and dump it in summer.
Geothermal heat pump tax credits are important because these systems are expensive. A beginning cost is about $10,000, but the entire system can easily cost more than $20,000 depending on its size and the amount of excavation and materials required.
Geothermal Heat Pump Tax Credit
The current tax credit for geothermal HVAC systems is 30 percent of the total cost with no upper limit. That’s a significant offset to the high prices.
Geothermal heat pumps will cut your heating and air conditioning costs by as much as 80% when replacing an old furnace or outdated air-source heat pump.
Here are the geothermal heat pump efficiency requirements. They’re somewhat technical. A qualified contractor specializing in geothermal heat pumps will be able to answer your questions about specifics.
Water-to-Air Geothermal Heat Pumps
Water-to-Water Geothermal Heat Pumps
Direct Expansion Geothermal Heat Pumps
Both refer to how efficiently the system uses energy.
2014 Utility Rebates for Energy Efficient HVAC Equipment
Utility companies across the country continue to offer rebates for efficient HVAC components that can significantly reduce their cost.
Call your utility company or take a look at its website.
DsireUSA.com is a database of utility company rebates along with any state and local tax credits available. It’s an excellent source of information as you look for ways to reduce HVAC prices for energy-efficient equipment that will keep your costs under control in the future.